The International Monetary Fund (IMF) fears that the increased oil supply resulting from the lifting of sanctions on Iran could put pressure on global oil prices, lowering these by anywhere from $5.00 to $15.00 a barrel.

Although, the futures market may have already accounted for the impact of Iran’s big return to the global oil market, a further decline in prices could materialize with the increase in exports from Iran.

Regardless of how other OPEC producers react, the fact that relations between Saudi Arabia and Iran are deteriorating rapidly suggests that their respective governments will fail to reach any mutually beneficial agreement. Rather, Tehran and Riyadh will be looking for ways to intensify the economic pain.